Monday March 23, 2009
Navivest

The National Association of Realtors’ Existing Home Sales report for the month of February 2009, showed that sales of previously owned homes jumped a surprising 5.1%, from January’s record lows, to an annualized rate of 4.72 million units. This was the largest monthly increase in six years. Forecasters had been looking for an annual rate of 4.45 million from January’s 4.49 million annual rate.

Distressed sales, which are basically sales of foreclosed properties, accounted for 40-45% of previously owned home sales, as buyers snapped up bargains. Lending credence to the idea that cheap foreclosure properties are driving home buying, was the fact that sales were up 30.4% in the west, the most amongst the country’s geographic regions, over the same period last year. This is the region hardest hit by foreclosures.

From January to February, sales were up 15.6% in the Northeast, 1.0% in the Midwest, 6.1% in the South, and 2.6% in the West.

The Obama administration’s first time home buyer plan, which provides a tax credit of up to $8,000 for those buying a home for the first time, might also be spurring home sales, as first time buyers made up half of all those buying existing homes in February.

existing home sales housing market economic calendar national association of realtors